Other lending facilities

Eligibility: U.S. dollar-denominated asset-backed commercial paper (ABCP) rated at least A-1/P-1/F1. The ABCP must be purchased from a money market mutual fund (MMMF).

Valuation and Haircuts: Pledged ABCP is valued at the amortized cost at which the ABCP was originally acquired by the MMMF (the program requires the borrower to purchase the ABCP from the MMMF at that price). There is no haircut applied.

Commercial Paper Funding Facility (CPFF)

Eligibility: Three-month U.S. dollar-denominated CP (including ABCP) that is rated at least A-1/P-1/F1.

Risk Management: CPFF assets are purchased by a special purpose vehicle (SPV). ABCP purchased by the SPV is backed by underlying assets. Unsecured CP purchased by the SPV is subject to an additional fee, indorsement/guarantee, or separate collateral arrangement. The CPFF also collects registration and other fees that provide a cushion against potential loss.

Money Market Investor Funding Facility (MMIFF)

Eligibility: U.S. dollar-denominated CDs, bank notes, and CP with a remaining maturity of 90 days or less issued by designated financial institutions that have a short-term debt rating of at least A-1/P-1/F1 from two or more major NRSROs.

Risk Management: MMIFF assets are purchased by a series of special purpose vehicles established by the private sector (PSPVs). The Federal Reserve lends, on a senior secured basis, 90 percent of the price of the assets. First loss is taken by the sellers of the assets, who fund the remaining 10 percent by purchasing subordinated ABCP issued by the PSVPs.

Term Asset-Backed Securities Loan Facility (TALF)

Eligibility: Asset-backed securities (ABS) backed by auto loans, student loans, credit cards loans, or SBA-guaranteed small business loans. The ABS must have two or more top (for example, AAA) ratings or, in the case of SBA ABS, must be fully guaranteed by the U.S. Government.

Valuations and Haircuts: The ABS must have been purchased by a third party and valued at a market price. Haircuts are designed to exceed four times the estimate of stressed losses.

NOTE: The collateral and loan amounts shown correspond to the data in the final column. This date reflects the most recent report issued to the Congress under Section 129 of the Emergency Economic Stabilization Act.

NOTE: The collateral and loan amounts shown correspond to the data in the final column. This date reflects the most recent report issued to the Congress under Section 129 of the Emergency Economic Stabilization Act.

1. Despite the decline in the current fair value of the collateral, the Board does not anticipate that this loan will result in any net loss to the Federal Reserve or taxpayers. The loan to Maiden Lane LLC was extended with the expectation that the full value of its portfolio (the collateral) would be realized either by holding the assets to maturity or by selling the assets in an orderly manner over an extended period of time. In addition, JPMorgan Chase will absorb the first $1.1 billion of realized losses, should any occur. Moreover, under the terms of the agreement, the Federal Reserve Bank of New York is entitled to receive interest payments on the loan to Maiden Lane, as well as any residual cash flow generated by the collateral after the loans to the Federal Reserve Bank of New York and JPMorgan Chase are repaid. Return to text

2. This lending is secured by a pledge of assets of AIG and its primary non-regulated subsidiaries, including AIG's ownership interest in its regulated U.S. and foreign subsidiaries. Furthermore, AIG's obligations to the Federal Reserve Bank of New York are guaranteed by each of AIG's domestic, nonregulated subsidiaries that have more than $50 million in assets. These guarantees themselves are separately secured by assets pledged to the Federal Reserve Bank of New York by the relevant guarantor. Additional subsidiaries of AIG may be added as guarantors over time. In light of the complexities involved in valuing the extremely broad and diverse range of collateral and guarantees securing these advances, any estimate of the aggregate value that ultimately will or may be received from the sale of collateral or the enforcement of the guarantees in the future would be speculative and could interfere with the goal of maximizing value through the company's global divestiture program and, consequently, diminish the proceeds available to repay the loan. Given the substantial assets and operations supporting repayment of the loan, as well as the equity interest in AIG that the U.S. Treasury Department has received or will receive, the Federal Reserve does not expect that this lending to AIG will result in any net loss to the Federal Reserve or taxpayers.Loans under this program are non-recourse as to principal. Return to text

Lending to primary dealers

Banks and securities broker-dealers that trade in U.S. Government securities with the Federal Reserve Bank of New York ("Primary Dealers")

Equal to the primary credit rate in effect at the Federal Reserve Bank of New York

Term Securities Lending Facility (TSLF) and TSLF Options Program (TOP)

Primary Dealers

Set in an auction process subject to a minimum bid rate. The TSLF minimum bid rate is 10 or 25 basis points, depending on the type of collateral used in the auction. The TOP minimum bid rate is 1 basis point